Developing Countries Should Diversify Out of U.S. Treasury Bills

That was Harvard President Lawrence Summers’ recommendation at a recent conference at the Center for Global Development (CGD) in Washington.

According to CGD’s site, Summers suggested that developing countries with unusually high levels of reserves shift part of their holdings from U.S. government debt to a diversified international stock and bond portfolio. This move would generate higher returns that those countries could use to improve the lives of their people.